AKRON (April 20)—Goodyear will receive $22 million in the second quarter from an insurance settlement for asbestos and pollution-related claims it filed.
The funds will be paid by Lloyd´s Underwriters, reinsured by Equitas Ltd., Goodyear said. Equitas plans to place $39 million in a trust fund that can be used to reimburse the tire maker for costs it incurs to resolve certain asbestos claims. If federal asbestos litigation legislation is enacted before Jan. 3, 2007, Equitas may have the right to some or all of the funds in the trust. If no legislation is enacted, the remaining funds will be paid to Goodyear.
Specific terms of the April 13 settlement are confidential, but it provides for payments to Akron-based Goodyear in exchange for a complete termination of the underwriters´ obligation under the pre-1993 policies, Goodyear said.